U.S. President Donald Trump announced on the 26th (local time) that the 25% tariff on imported automobiles will also include core parts such as engines.
The White House stated that a fact sheet regarding the automobile tariff, which will take effect on April 2, noted, 'A 25% tariff will apply not only to imported passenger cars (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, but also to core automobile parts such as engines, transmissions, powertrain components, and electrical parts.'
However, the White House reported that for automobile parts compliant with the U.S.-Mexico-Canada Agreement (USMCA), the Secretary of Commerce will maintain a tariff exemption until a process is established to impose tariffs on non-U.S. elements included in the products, in consultation with the Customs and Border Protection (CBP).
The White House noted that there will be a process to expand the scope of tariff targets for parts if necessary, stating that under the USMCA, a system will be implemented that imposes a 25% tariff only on non-U.S. elements of imported vehicles entering the United States.